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Crude Oil Prices Suffer Biggest 2-Year Bloodbath On Record

Tyler Durden's picture




 

With yet another false-dawn of crude prices blowing in the wind of cash-flow generation desperation, we thought it an appropriate time for a bigger picture glance at the state of the carnage in crude...

 

An ugly 2014 (down 46%)...

 

Brought an avalanche of knife-catching "once in a lifetime" opportunists into ETFs to buy the dip in as levered way as they could...

 

Only to see crude prices collapse another 31% in 2015 for the worst 2 year crash in the history of crude oil trading...

h/t @VexMark

 

And despite this bloodbath, production is rising, demand flailing, and global storage is at its limit...

 

So what happens next?

 

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Wed, 12/30/2015 - 22:55 | 6980609 One And Only
One And Only's picture

Maybe we get efficient at pumping it back in the ground.

Oh wait...SPR.

Wed, 12/30/2015 - 22:57 | 6980615 highandwired
highandwired's picture

"What happens next"?

Collapse?  Please?  Pretty please, bring this ponzi fraud down! 

Wed, 12/30/2015 - 23:16 | 6980662 Escrava Isaura
Escrava Isaura's picture

 

 

Article in 2015: Crude Oil Prices Suffer Biggest 2-Year Bloodbath On Record

 

Article in 2016: Crude suffers the biggest bloodbath ever. A litter of Perrier water costs more than a barrel of oil .

 

Wed, 12/30/2015 - 23:23 | 6980679 CrazyCooter
CrazyCooter's picture

I would like to see that "crude storage capacity" expanded and defined.

The real story here is that the global economy has an energy DEMAND problem ... that is getting worse.

If certain parties don't start actively shooting at other parties to take supply offline, things are going to be heading straight to hell in quick order (like they haven't been already). Buckle up!

Regards,

Cooter

Thu, 12/31/2015 - 06:39 | 6981149 Thom_333
Thom_333's picture

Demand problems...maybe. The other side of the equation is that we are witnessing economic warfare against Russia. They are trying to pull the same trick they did with Gorbatjov.

If we wake up with the news of Putin being overthrown the price will rapidly rise to 115 USD.

Gives you an interesting view on what the "real" oil price really is. An the profit margins of the ayrabs. Another argument to kikck their ass and take their gas. And yes they will try to flee on their private jets but that´s a minor problem that a volley of BUK´s will take care of.

Honestly - who needs and wants these people...?

Fri, 01/01/2016 - 20:00 | 6986630 Milton Keynes
Milton Keynes's picture

what you call an "Energy Demand PROBLEM" i would call 

improved productivity and technology.

When I replace 8 100 watt incandescent bulbs in my house with 8 1500 Lumen LED lights 

consuming 15 watts each, I have destroyed 900 watts of electrical demand and 2 KW of AC demand

in the summer.  

 

My house is now noticably colder in the winter, i'm having to fix some air leaks that weren't an issue before.

 

When I replaced my car with a Chevy Volt with my lifetime MPG of 188 MPG,  i have destroyed

about 200 tanks of gasoline i will never ever buy again.

When I add 5 KW of Solar PV to my house, I will destroy a lot of electricity demand via small production.

 

Thu, 12/31/2015 - 03:35 | 6981056 MsCreant
MsCreant's picture

Then there will be a fire underground, then an explosion where they don't know how to put out the fire and the oil leaks into every water table in America while the air will be filled with toxic fumes that will make China look like a pristine paradise?

Thu, 12/31/2015 - 04:25 | 6981098 MSimon
MSimon's picture

Could you expand on the oxidizer supply?

Wed, 12/30/2015 - 22:56 | 6980610 Budnacho
Budnacho's picture

...and yet, my Gas is still $3.25 a Gallon...

Wed, 12/30/2015 - 22:58 | 6980617 autofixer
autofixer's picture

Taxes amigo.  Here in NC $1.78.  

Thu, 12/31/2015 - 04:26 | 6981101 MSimon
MSimon's picture

Illinois - $1.89

Wed, 12/30/2015 - 23:08 | 6980618 lunaticfringe
lunaticfringe's picture

Fucking Illinois. Probably half that price is tax.

Total tax, state by state. http://then.gasbuddy.com/USA_Tax_Map.aspx

Wed, 12/30/2015 - 23:18 | 6980671 beemasters
beemasters's picture

Uncle Sam: Thank you for helping fund the war in the middle east.

Thu, 12/31/2015 - 06:40 | 6981152 Thom_333
Thom_333's picture

Obamaland.

You voted for him - twice. And you got and will get even more of the Illinois political model.

Do you realize what you have done?

Fri, 01/01/2016 - 20:01 | 6986632 Milton Keynes
Milton Keynes's picture

Buy an Electric car and tell them to shove off

Wed, 12/30/2015 - 23:00 | 6980619 scaleindependent
scaleindependent's picture

What happens next?

Either Russia or the Arabs cry uncle.

Wed, 12/30/2015 - 23:21 | 6980676 milking institute
milking institute's picture

Or there is a "accident" in the suez canal,will call Vlad tomorrow to see what's on the agenda for the coming weeks......

Wed, 12/30/2015 - 23:32 | 6980703 arbwhore
arbwhore's picture

Suez doesn't carry much oil. Strait of Hormuz.

Thu, 12/31/2015 - 06:41 | 6981151 jeff montanye
jeff montanye's picture

thank you for your reality-based contributions, arbwhore.

Wed, 12/30/2015 - 23:06 | 6980635 divemaster
divemaster's picture

When Obama saved GM during the great recession, the republicans were bitching and moaning saying let capitalism play out. Well what comes around goes around. All these shale oil companies are in red states and we'll soon find out that the biggest crybabies are republicans. Obama and then Hilary will have the last laugh!!!

Wed, 12/30/2015 - 23:08 | 6980639 bamawatson
bamawatson's picture

wow, that's some deep diving

Wed, 12/30/2015 - 23:17 | 6980666 ebworthen
ebworthen's picture

Yes, you're pretty deep in the Matrix.

Need Oxygen, SOMA, or both?

Wed, 12/30/2015 - 23:50 | 6980756 Escrava Isaura
Escrava Isaura's picture

 

 

Not divemaster.  

You’ll be the one needing the mask next November.


 

Thu, 12/31/2015 - 06:39 | 6981148 jeff montanye
jeff montanye's picture

bernie '16

Wed, 12/30/2015 - 23:31 | 6980699 milking institute
milking institute's picture

See Kids,that's what happens when you don't properly decompress after your dive,permanent damage,as seen here....

Thu, 12/31/2015 - 02:10 | 6980990 Niall Of The Ni...
Niall Of The Nine Hostages's picture

And why do you think Obama is letting Riyadh dump oil below cost and destroy shale?

His attitude remains, fuck the crackers, they never voted for me anyway.

Thu, 12/31/2015 - 06:36 | 6981147 jeff montanye
jeff montanye's picture

no doubt that's true.

somehow i can read into that an implied different attitude toward those who voted for him.  one, i must add, i can't discern in his behavior.  speeches, possibly.  behavior, nada.

now as for those who gave him large amounts of money (or, probably, threaten him and his family), yes.

Fri, 01/01/2016 - 20:03 | 6986637 Milton Keynes
Milton Keynes's picture

well, if that is the truth, then he's finally developing some political skills.

Because he's shafting a lot of midwestern fracking companies, who gave heavily to the

GOP he's shafting a lot of red state governors who have budgets awash in red ink,

he's shafting a lot of industrial supply companies who were full of loyal red voters.

 

Wed, 12/30/2015 - 23:15 | 6980661 ebworthen
ebworthen's picture

Sweet!

I'm having to drive 40 miles each way to my 29 hours/week no bennies job.

Wed, 12/30/2015 - 23:34 | 6980713 arbwhore
arbwhore's picture

Markets are so highly levered now that even though the supply demand gap has streched a little (less than 10%), the price has fallen 2/3rds. Its not supply, its not demand, its "investors" levered up on cheap credit.

Wed, 12/30/2015 - 23:39 | 6980727 FreeShitter
FreeShitter's picture

Bingo and HY is proof.

Thu, 12/31/2015 - 03:42 | 6981062 MsCreant
MsCreant's picture

It's war. 

Wed, 12/30/2015 - 23:37 | 6980725 Francis Marx
Francis Marx's picture

Looking at the charts and closing above support ,  it looks like a ramp for thursday.

Thu, 12/31/2015 - 03:04 | 6981029 hendrik1730
hendrik1730's picture

Looks to me storage levels are rising in the US ONLY. The rest is fairly constant. Are the EU and Pacific storage facilities full since 1998? Don't think so .... this is a US problem - no consumption. Getting rid of humvees and the like ...

Thu, 12/31/2015 - 04:34 | 6981107 MSimon
MSimon's picture

hendrik1730

 

If you look carefully at the chart you will see that the EU and the Pacific are already "full". North America has a lot of storage capacity. We are the swing storage.

Thu, 12/31/2015 - 09:36 | 6981335 Thee Barbarous Relic
Thee Barbarous Relic's picture

1.52 in Tennessee!

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